Zydus Lifesciences has formed a joint venture with Sunshine Healthcare Lanka Limited to establish a pharmaceutical manufacturing facility in Sri Lanka, strengthening local production capabilities. The company will subscribe to 50% of the total paid-up equity share capital of Zydus Sunshine Lifesciences, a recently incorporated entity, through a cash consideration of up to USD 5 million. This strategic move aims to reduce import dependence and improve access to high-quality medicines in the region.

The joint venture agreement, signed on June 26, 2026, stipulates that zydus life science and Sunshine Healthcare Lanka will hold equal stakes in Zydus Sunshine. The entity will primarily undertake the manufacturing of pharmaceutical products in Sri Lanka. The subscription of shares is expected to be completed within 90 working days from the date of execution of the agreement.

Zydus Sunshine plans to set up a state-of-art manufacturing facility in the Horana Export Processing Zone. The project is designed to support national supply chain resilience and enhance the availability of essential medicines. The target entity, incorporated on May 30, 2026, currently has nil turnover as it is a recently established company.

Joint Venture Structure

The Board of Zydus Sunshine will comprise six directors, with three representatives each from Zydus and Sunshine. Zydus will appoint the Chairperson, who will hold a casting vote on all matters except reserved matters. Any changes to the capital structure will require the approval of both partners.

The transaction does not fall within related party transactions, and none of the promoter or group companies have any interest in the subscription. The investment will be made in one or more tranches, subject to specific adjustments. The facility will operate under the oversight of the Board of Investment of Sri Lanka.

Zydus Lifesciences Limited has extinguished 87,30,158 equity shares bought back at a price of ₹1,260 per share, reducing its issued, subscribed, and fully paid-up share capital to 99,75,03,832 equity shares. The extinguishment was completed on June 18, 2026, in compliance with Regulation 11 of the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018. The buyback, which was fully subscribed, utilized an aggregate amount not exceeding ₹1,100 crore. Following the extinguishment, the company disclosed the acceptance of shares tendered by promoters and key managerial personnel under Regulation 7(2) of the SEBI (Prohibition of Insider Trading) Regulations, 2015.

Share Capital Reconciliation

The reconciliation of the share capital confirms the reduction following the extinguishment process. The company bought back the shares through a tender offer that opened on June 4, 2026, and closed on June 10, 2026.

Shareholding Pattern

The post-buyback shareholding pattern indicates a shift in promoter holding. Promoter and Promoter Group holding increased to 75.01% of the post-buyback equity share capital, up from 74.99% prior to the buyback.

Insider Trading Disclosures

Disclosures filed under SEBI (Prohibition of Insider Trading) Regulations, 2015, detailed the acceptance of shares by promoters, directors, and their relatives. Zydus Family Trust, a promoter entity, tendered 63,49,542 shares, while Pankajbhai Ramanbhai Patel, Promoter and Director, had 124 shares accepted. Sharvil Pankajbhai Patel, Promoter and Managing Director, saw 124 shares accepted. Tushar Dhansukh Shroff, Chief Financial Officer, had 5 shares accepted.

Regulatory Compliance

National Securities Depository Limited confirmed the extinguishment of the shares in dematerialized form on June 18, 2026. A certificate of extinguishment dated June 19, 2026, was issued by the company's Chairman, Managing Director, and Company Secretary, confirming compliance with the Buyback Regulations. The company submitted the public announcement regarding the extinguishment to the exchanges on June 19, 2026.